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Opinion
Shuli Ren

Why Your Retirement Comes at a Disadvantage

To keep up with most people, the minimum return your 401(K) should have been 8.3% last year. And the ultra rich did a lot better than that. 

Some nest eggs are more golden than others.

Some nest eggs are more golden than others.

Photographer: erenmotion/iStockphoto

Many of us thought the Covid-19 pandemic would have led to financial market meltdowns, but we were so wrong. After a year of lockdowns, with nowhere to go and spend money, we saved and invested so much many might feel a step closer to retirement. 

Let me be frank with you: That absolute figure in your 401(K) account is misleading. An inflation in asset prices will only propel a rise of the cost of living, especially in non-essential items. Restaurant bills will appear bigger, so are your summer car rentals and private school tuitions. Instead, we need to benchmark our portfolios against how others are doing — just to make sure our purchasing power isn’t eroding.